Healthium Medtech IPO

 

Healthium Medtech Limited is a global medical technology firm that specialises on surgical, post-surgical, and chronic care solutions. Their mission is to provide every patient in the world with accessible to quality medtech solutions. Healthium Medtech IPO will hit the market in November 2021.

About Healthium Medtech

They have four core regions: innovative surgery, urology, arthroscopy, and wound care, and they operate in three key markets: India, the United Kingdom, and the rest of the world.

A Healthium product is used in one out of every five surgeries performed throughout the world. With a 7.91 percent share of the surgical consumables market in India, they are the biggest private medical device firm and the second-largest overall.

They are the world’s largest non-captive surgical needles producer, with a global market share of 22.30 percent and a 45.41 percent share of the non-captive market, and is also one of the leading private medical device manufacturers and the third-largest organisation in the UK’s urology gathering devices market, with a 13.96 percent market share.

Products

Between Fiscal Years 2019 and 2021, they increased market share in all of our markets and core areas while increasing profits. (According to the Frost & Sullivan Report) In their key areas, they offer a robust product platform with over 52,000 SKUs to meet the diverse demands of their clients and patients. They have the following in their portfolio:

• Surgical consumables

Sutures, surgical needles, hemostats, staplers, surgical gloves, and infection prevention items are among the surgical consumables used in advanced surgery. Tubular and support bandages are available in wound care. Via the acquisition of CareNow, they have lately increased their footprint in this focus area.

• Urology

Incontinence management solutions such as indwelling and intermittent catheters, collecting devices, and a number of supporting equipment are available.

• Arthroscopy

For knee and shoulder arthroscopy surgeries, a variety of implants and equipment are available.

Client

In each of their core markets and emphasis areas, they compete largely against huge international firms and numerous local players. They feel that their broad assortment of high-quality products at a compelling price sets them apart from their competition.

Their quality and value propositions align with the focus of healthcare stakeholders including as governments, hospitals, payers, and surgeons on enhancing healthcare affordability and access.

Furthermore, they think that their well-known corporate and product names, as well as their partnerships with hospitals, surgeons, and distributors, provide them a competitive advantage.

Healthium Medtech IPO

Healthium Medtech Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 390 crores and 39,100,000 equity share on 05 September 2021.

The offer includes 390 crores value fresh equity shares and there is an offer for sale (OFS) of 39,100,000 equity share by the promoters mentioned in the DRHP.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		791.78	710.31	683.34
Total Revenue		726.76	652.38	588.90
Profit After Tax		85.43	36.76	13.73

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	9.23	9.23	3
Financial Year 2020	3.98	3.98	2
Financial Year 2019	1.49	1.49	1
Weighted Average	6.19	6.19

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the basic features that go into determining the Offer Price:

• They’re a top medtech company with a global footprint, and they’re well-positioned to take advantage of favourable industry dynamics in high-growth regions.
• Their targeted research and development activities have resulted in an innovative and comprehensive product line, and They have a proven track record of commercialising our solutions.
• They have a large sales network and market access across their target areas, as well as long-standing client connections.
• With global certifications, they have high-precision, integrated, and scaled production plants.
• They have a track record of successfully integrating acquired businesses and fostering inorganic development.
• They have a track record of delivering strong financial results.

Healthium Medtech IPO Peer Comparison

There are no publicly traded firms in India that operate in a similar industry to theirs. As a result, providing an industry comparison in regard to their Firm is not possible.

Healthium Medtech IPO Details

IPO Opening Date	November 2021
IPO Closing Date	November 2021
Issue Type	Book Building
Face Value	1 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Order Quantity	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	390 crores
Offer for Sale	39,100,000 equity share

Healthium Medtech IPO Date

Healthium Medtech IPO opening date is November 2021, and the closing date is November 2021. The Healthium Medtech IPO issue may list in November 2021.

IPO Opening Date	November 2021
IPO Closing Date	November 2021
Basis of Allotment Date	November 2021
Initiation of Refunds	November 2021
Credit of Shares to Demat Account	November 2021
IPO Listing Date	November 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

Healthium Medtech IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Healthium Medtech IPO.

Healthium Medtech IPO GMP

Healthium Medtech IPO Grey Market Premium is 0.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021

Healthium Medtech IPO Review

Healthium Medtech IPO review will depend on the price band. Whenever it will be announced we will update you regarding review of Healthium Medtech IPO is good or bad.

Healthium Medtech IPO Risk

• Changing laws, rules, and regulations, as well as legal issues, such as the misapplication of corporation and tax laws, may have a negative impact on their business.
• They may not be able to maintain their current growth rates, and their past performance may not be indicative of their future performance.
• The COVID-19 epidemic has had and will continue to have a negative impact on their company.
• Their capacity to successfully advertise their products is based in part on their acceptability not just by clients, but also by independent third parties.
• Client pricing pressure may have a detrimental effect on their gross margin, profitability, and ability to raise prices, which could hurt their business.

Other Threats

• Their approach of growing their business inorganically via acquisitions and deepening and broadening their geographical reach may not be sustainable.
• Certain items are manufactured by third companies.
• Depending on the export destination country, their items may be subject to a variety of duties. Any increase in such duties could have a negative impact on their business.
• Tax incentives that they currently receive may be reduced or terminated, which might have an impact on their operations.
• Any disruption, delay, or reduction in the availability of raw materials used to make their goods may have a negative impact on their business and operating performance.
• They are exposed to foreign exchange risk, which could have a negative impact on their business and financial results.

Footprint

They operate in three primary markets: India, the United Kingdom, and the rest of the world:

• India

In India, they have a strong business presence and market access. They have the biggest direct sales force across independent medical device businesses in India as of March 31, 2021. (According to the Frost & Sullivan Report)

As of July 31, 2021, their direct sales team numbered approximately 350 people. Their sales force covers approximately 40,000 surgeons across 18,000 hospitals in India as of March 31, 2021, accounting for 40% of surgeons and 52% of hospitals in the country. (According to the Frost & Sullivan Report)

Their sales network covers 90 percent of the 523 districts in India with secondary healthcare services as of 2020. (According to the Frost & Sullivan Report)

• United Kingdom

In the United Kingdom, they have a strong commercial presence and market access. They have a direct sales force of 27 personnel, supported by a staff of 13 nurses, as of July 3rd, 2021, to boost patient consumption of their goods.

They have exposure to hospitals and community care trusts thanks to their NHS contracts and listing on the UK Drug Tariff. With a dispensing appliance contractor licence (” DAC licence”), they can also supply supplies directly to patients.

• Rest of the world

They supply to approximately 80 nations, including industrialised markets such as the United States, the United Kingdom, Germany, and France, as well as developing markets in South America, Asia, and Africa.

The majority of their products are sold under their own labels. In these markets, they have long-standing ties with a number of well-known clients and suppliers.

Patents

For their proprietary products, they have a range of patents. They have 21 patents in India and 11 patents in the United States as of July 31, 2021, with 22 and six patent applications for approval in India and the United States, correspondingly.

They acquired an additional portfolio of patents in India, the United States, and Europe, as well as one patent application pending in India, via their recent acquisition of CareNow.

Healthium Medtech IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Healthium Medtech IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
November 2021	1
November 2021	2
November 2021	3

Promoters

• Quinag Acquisition (FDI) Limited (“Quinag”)

Promoter’s Holding

Pre Issue Share Holding	99.79%
Post Issue Share Holding